USA jack Meets Panama1 - Institute of International Education
Transcription
USA jack Meets Panama1 - Institute of International Education
USA jack Meets Panama1: TOURISM PLANNING AND MARKETING IN PANAMA Case Description Teaching Plan and Session Overview T How can a student attack this situation? It is important to have certain tools and frameworks at the marketing professional's disposal to dissect a problem and develop an appropriate strategy. These tools will be referred to as the Marketer's Toolbox. The tools represent defined actions that are to be used to assess a situation, determine paths of action and implement strategic decisions. his case focuses on Jack, a 25-year old business professional contracted by the US Agency for International Development to assist with the development and promotion of a small ecotourism business located just outside of Panama City, Panama. The reader follows Jack as he arrives to the airport, converses with an informative taxi driver, visits an experienced government tourism official and takes a trip to the village which hosts the tourism offering. As Jack encounters the various situations, each provides information needed to make strategic marketing decisions. He is given a number of tasks that will ultimately assist a small community and the Government of Panama plan and promote a successful tourism offering. While this offering supports economic and social development for the community, it also is a product for tour operators to use to promote to an international tourist audience. Position in the Course Emphasis for study is on the core areas of strategy, economic development, micro-enterprise development, marketing, business-government relations and business and society. Teaching Purpose and Objectives This case is appropriate for strategic marketing and strategic management curriculum. It helps students apply situational analysis, market research, positioning and segmentation tools to help in marketing and promotions management. It allows a student to become familiar with the methods and objectives of a SWOT analysis, mission statement development, perceptual mapping, market research questionnaire and collateral material development and sales strategies. It provides insight into business and its ability to reach and influence every level of the world society. Within the given setting, there exists many possible courses of action. After reading the case, a marketing student can begin to organize the information within the context of particular available frameworks, analyze the results and recommend action. The Table below represents the tools that comprise the Marketer's Toolbox for confronting the issues depicted in this case. A marketer has many frameworks and tools at his/her disposal. but information was provided in the case for incorporation in a detailed analysis by using the following recommended marketing tools. Diagnostic Tools "Power Tools'' "Finishing Tools" Situational Analtsis Mission and Objective Identification Market Research Perceptual Maeeing Segmentation and Positioning Promotion Relationship Marketing Ma rketer's Toolbox With any construction project, each stage and level depends upon the results of the previous one and requires different types of tools to complete the desired task. As an architect needs measuring, drawing and calculating tools to diagnose and design a construction project and specify the required materials, a marketer uses specific tools to diagnose the busi- CASES for M ANA G EMENT ED UCATION- T EAC HING NO TES 43 CASE STUD I ES - T EACHING NOTES W eaknesses Strengths Developing media and industry recognition. Learning customer service techniques and standards. Have tremendous traditional, environmental and cultural resources and knowledge. Willingness to learn. Developing business understanding. Energetic, friendly and youthful community. Have focused and intelligent leaders. Unique Product. Desire to work hard towards success. Trusts aid organizations, such as IPAT. The community enjoys cultural exchange and interchange. • • • • • • • • • • • Vision for the future does not exist, are living day-to-day. They are struggling to find the right direction, activity mix and where they should focus their sales efforts. Lack of education and business skills. Mistrust and conflict between NOKO and WECHA. It is a challenge moving away from traditional subsistence methods and towards currency based society. Distribute most of revenue. Not much money . left for maintenance, improvement or expansion. Not familiar with investing or saving money. English Language Barrier. Environmental Damage - trash, water contamination. Materialism and selfishness developing. Dependence on aid organizations. Not a self-sufficient entity. Opportunities Threats People in Panama City have disposable income Increase in international tourist number to Panama, many are attracted by cultural and natural resources (5% Growth Rate). Panama is close to the US (2 1/2 hours) IPAT has a planned focus on ecotourism investment and assistance, especially indigenous projects. !PAT-International Promotion is looking for organized and quality tours to promote. There exist partners willing to help with training and support NGO's and tour operators. Have an established monetary base, US Dollar. The Government of Panama is promoting conservation and economic development programs to provide income generating activities for communities living in the park. • • • • • • • • • • • Lending agencies require financial management experience & collateral. Cultural inequities exist, indigenous groups are historically not in a position of power or ownership. Open to exploitation. Foreign tour operators and tourists do not recognize Panama as the destination for cultural tourism. Experienced competition exist world-wide for cultural tourism. Modern influences, capitalistic societal pressures on the community. US Troop relocation has decreased the money spent on domestic tourism. Large government or private sector focus and involvement disrupts the natural feel and makes the community lose complete control. IPAT has inexperienced, weak promotion and marketing skills. In general, Panamanians do not appreciate or understand nature and cultural-based tourism. Beaches and nightlife are more in demand. Park authority (ANAM) is understaffed and park management and conservation efforts are not successfully occurring. ANAM's inefficiency in park management and planning skills has led to poor park infrastructure and access. Exhibit TN-I. Swot Analysis - Parara Puru 44 P ORTRAITS of BUSINESS PRACTICES in EMERGING MARKETS USA ]ACK MEETS PANAMA: TOURISM PLANNING and MARKETING in PANAMA ness climate, identify the resource gaps that need filling and develop a consensus for the direction of the organization. Questions and Discussion I. Diagnose the climate for tourism in Panama and report on Parara Puru's ability and desire to develop a successful tourism site In the case, both the scope of work document and Julian Chang requested that the student diagnose the general climate for tourism in Panama and develop an assessment of the ability and desire of the community to succeed in tourism. These tasks can be completed by using traditional strategic marketing tools: Mission Statement, Objective Development and a SWOT Analysis. The mission statement, or purpose, of an organization is the description of its reason for existence.2 It is a representation of what an organization wants to accomplish in the long-run. It shows a company's unique objective that it believes will differentiate it from similar companies, and the means by which in plans to accomplish this differentiation. In developing a statement of mission, management must take into account three key elements: the organization's history, its distinctive competencies and its environment. The basic questions that must be answered when an organization decides to examine its mission are: What is our business? Who is the customer? What do customers value? And what will our business be?, When completed, an effective mission statement will focus on markets rather than products. Associated objectives will be achievable, motivating and specific.4 An example of a mission statement that satisfies these requirements for Parani Puru is the following: "As a community defined by our indigenous heritage, but challenged by the changing times, we the Parara Puru community, are dedicated to benefitting economically and socially from the tremendous cultural and natural resources that we possess. We appreciate the environment in which we live and want to share access to those resources with inquisitive travelers and knowledgeable and responsible tour operators. The forest and rivers of The Chagres National Park, the traditions and heritage of our Embera culture and the desire to succeed in our business, will be the driving forces behind the future ofThe Paranl. Puru tourism offering." The SWOT Analysis is a common tool and a very useful approach to understanding a situation faced by an organization at a particular point in time. The acronym SWOT stands for the organization's Internal Strengths and Weaknesses and the Opportunities and Threats the organization faces in the external environment. Determining and categorizing the CAS ES for MANAGEMENT EDUCATION - information pertinent to the future success or failure of the organization provides powerful decision making guidance. With a clear understanding of the organizational objectives and mission, analysis of the firm's current situation is possible through t he examination of the key situational areas. A SWOT Analysis for the Paranl. Puru community can be elaborated by sorting through pieces of information given in the case. For example, the taxi driver, Julian Chang and the visit to the community provided details describing the internal and external environment that the community must address. From this information an analysis was developed and it is presented in Figure TN-I. 2. What type of tour should they sell? Continuing to follow the construction analogy provides insight to other tools contained in the Marketer's Toolbox. After the plans are established and a vision is defined for the construction project, it is time for the power tools, such as cranes, saws and cement trucks to add to the project. These tools are required to accomplish the heavy duty tasks needed to establish the structure of the project. The tasks accomplished with these tools establish the foundation for the building and make possible the completion of the construction project. The power tools available to a marketing professional satisfy the same requirements for a product roll-out. These tools do the "heavy lifting" or strategic analysis needed to plan a strategy for successfully attacking the market and selling a product. Sifting through the market research data and designing a perceptual map will allow the marketing student to determine tourist needs and visually see how well their offering meets the needs of their desired customer relative to the competition. These two steps involve defining the product and making segmentation and positioning decisions based on noted competitive advantage. By using the various trip descriptions provided in the text, in conjunction with the niche tourism research data, a student should be able to categorize the activities and place them within the context of a perceptual map that shows positioning strategies. An example of a perceptual map appears in Figure TN-2. It is based on niche tourism product attributes available to independent, tour operator and cruise travelers. This diagram shows that tour operators could successfully use their tour to reach the desired niche. Creating primary data specific to the tourism destination is a key tool in analyzing your customers, developing a product and positioning the offering. The Parara Puru community needs to focus their information gathering efforts on determining the demographics of their customers, the activities their customers want, the avenues and image they should use T EACHING NOTES 45 CASE STUDIES - TEACHING NOTES ExhibitTN-2. Perceptual Map to attract more guests, visitor satisfaction levels and other opportunities to make money. Figure TN-3 shows an example of a questionnaire that would provide the data required for such a market research initiative. 3. How should the community promote and sell the tour? Finally, using tools for putting in carpet and tile, painting and wallpapering and connecting the water pipes and electrical outlets finish a construction project and make it ready for use. The particular tools a builder uses to finish a house or building are also required for a marketer to "finish" the product and make it available and appealing to the market. The finishing tools used in this case will be used to determine how to sell the product. The case enables the student to make Promotion and Distribution decisions along the 4 P's marketing analysis model. Promotion uses advertising or other promotional efforts to stake out a desirable position within the market. This builds consumer awareness and signals to competitors your position within the market. This is the face or identity of a company. It should be used to accomplish sales objectives, prepurchase objectives, which are developing awareness, interest and desire and promoting action. Finally, promotion should be used to promote image building objectives. Two types of col- 46 lateral materials are very important in promoting a tourism destination: brochures and the internet. In this case the brochure is highlighted. An example of a brochure, including a slogan, is provided in Figure TN-4. The image promoted is a mix of education, adventure and wilderness, based upon the activities that the community can provide. The principle audience is tour operators desiring a tourism destination to provide their clients. The audience is the type of tourists to which tour operators cater. It could also be used to attract the occasional independent tourist, but this should be done separately.The statement saying that independent tourist can contact the community directly should be omitted from a brochure targeting tour operators. The cover of the AeroPerlas magazine does not support the image the community should be portraying. This publicity degrades the adventure, wilderness and educational components of Parani Puru's desired positioning strategy. It takes away from the authentic indigenous tourism destination appeal that tour operators and the travelers they cater to desire. Distribution channels minimize transaction barriers and allow access to the market. Channel decisions must be made on an assessment of the organization's goals and resources and an understanding of the market. Comparing the income potential of the t hree types of tourist niches, the cruise market seems most desirable, but using this distribution channel would pres- PORTRAITS of BUSINESS PRACTICES in EMERGI NG MARKETS USA J ACK M EET S P ANAMA : TO U RISM PLAN N IN G and MARKETI N G in PA N AM A Questionnaire for the Embera Village tourist activities 3. Sex (please circle) I. Please state your City 2. Age (circle one) 15-24~_ _ _45-54 and Countcy of M residence --~~-- 5. What information did you use in deciding on the activities that you would do while In Panama? (Check all that apply) Tour Agency/Package Tour Friends/Family Web Site/Internet Past experience/Previous Visit 6. IPAT - Panama's Tourism Ministry local Ads (Radio, TY, Billboards) Travel Books/Guide/Magazine Other? Please list: - - -- - - What were the 2 main reasons that you came to our village today? (Please check 2) ~ To take pictures To understand a different culture To spend time in the Chagres Park · To eat Embeni food _ _ To hike in the Jungle _ _ To learn about traditional plants To see wildlife 7. To go swimming, rafting To see and hear music and dance _ _ To buy artesnia To learn a new skill or hear a new language To experience something different To talk to an indigenous group Other? Please list: Please rate the activities/services that were offered to you today. Please add comme nts. I - Excellent 2 • Good 3 - Fair 4 - Disappointed Cultural Talk Food Nature Walk _ _ Tour guide performance 8. Music/Dance Artesenia Cultural Interaction Facilities If the following activities were to be offered, please rate your level of interest in participating. I • very interested 4 • somewhat disinterested 2 - somewhat interested 5 • very disinterested Art making exhibition/Carving demonstration Learning Emben\ phrases and words Traditional cooking/recipe sharing Helping build or participating in traditional fishing Watching/participating in traditional work Kayaking · · Cultural Museum Rock Climbing 9. How did you get to the village? (Check) _Tour Operator. Which one? _ _ _ __ _ Independently. How? Other? Please State: F 25-34 55-64 35-44 _ _ _ _.65-over 4. 3 - neither interested nor disinterested More culwral interaction More birdwatching time/ a tower Farming exhibition Longer hike into the jungle _ _ White water rafting Story telling session Camping If the following materials were available for sale, please express your likelihood of purchasing. I - very likely 4 - somewhat unlikely 2 - somewhat likely 5 - very unlikely 3 - neither likely nor unlikely T-Shirt Calendar Postcards Cultural video Embera history and culture book Photo book Poster (10 • II ) Using the following scale, please answer questions 8 a nd 9. Please comment. I • very satisfied 2 - somewhat satisfied 3 - neither satisfied nor dissatisfied 4 - somewhat dissatisfied 5 • very dissatisfied I 0. Were you satisfied with your visit? _ __ I I. Were you satisfied with the value of the activities offered for the price that you paid? _ __ 12. Please offer any other comments that you feel would he lp the community. _ __ I• ExhibitTN-3. Sample Questionna.ire r CASES for MANAG E M EN T ED UCATION - TEA C HI NG NOTES 47 CASE STUD I ES T EAC HI NG NOTES Were You Satisfie d with Your Vis it? E#p~r cnc~ Poraro Puru and The Cbagr~s National IIGCJC Park Very Satisfied Somewhat Satisfied 91% 9% &>4y TtJp AdfV,I&Jct Exhibit TN-5. Visit Satisfaction floal rt«• 10 Vl1.,4 • Vlll'19• Totlr l.urtell • 1'r'i141tlonol 4onc• A111 6 <'!'llftf • lnlctpfc,lvc 'tf<lll SW!lnmlhf • tlrdwot<lllno; Were you satisfied w ith t h e va lue of the act ivities offered for the price you paid? Very Satisfied Somewhat Satisfied Somewhat Dissatisfied Very Dissatisfied 68% 29% 2% 2% Ex hibit TN-6. Price/Value Sat isfaction Understand a Different Culture Take Pictures for ReservCltlons COiltoct o tour CIPU<Itor ot <<Ill t}lol Y111<19• dlruuy en 811 GAd l<ovc your ruiM• "'"' nu-r ICI tllot tt••v con con you t o <1rron9• your trip. 73% Spend Time in Chagres Park Eat Emberi Food 7% 0% Hike in the Jungle Other 16% 7% Swim/Water Sports See and Hear Dance and Music 20% 7% Learn about Traditional Plants Exhibit TN-4. Proposed Tourism Brochure, USDA-assist e d design ent many problems. When considering the limit of acceptable change that the community is willing to live with, compared with the desired levels of income the community requires to support sustainable economic and social advancement, the tour operators offer a nicer package. This brochure should be used as a part of a relationship marketing initiative that is a visual r epresentation of what they have to offer and will allow them to approach tour operators with whom they would like to do business. Conclusion At this point, the Parara Puru community has been able to make tourism work for them. The community has gone through some changes, but benefits continue to be seen as a result of their venture into ecotourism.The community implemented a market research questionnaire, identified a positioning strategy and started a relationship marketing campaign targeted towards key tour operators. These effor ts have fueled significant business and community decisions and changes. Market Research Res ults The market research results compiled are the result of a survey of 90 visitors to the village over a 2-month period. Figures TN-5 and TN-6 show a general satisfaction with the commu- 48 13% See Wildlife 9% II% Buy Artwork Learn a new Skill or Language 9% 7% Experience Something Different Talk to an Indigenous Group 47% 31% . Exh•b•tTN-7. Reasons fo r wantmg t o come to the villa ge nity's tour offering. Figure TN-7 points out the preferences of the visitors and figures TN-8 and T N-9 provide a general demographic profile of the type of travelers the tour is attracting. Finally, figure TN-I 0 highlights distribution channel upon which the community depended. Pararc1 Puru organized their tour offering according to activities suggested in the market research questionnaire. The community decided that the visitors wanted to become familiar with the traditions, history and way of life of the village.The community organized a series of activities that allow a visitor to experience the community. The activities focused on a cultural interchange and knowledge exchange. Activities such as, fishing techniques, art-making demonstrations and an Embera language learning session were among some of the activities provided. This added variety of the tour program allowed for a more relaxed and natural interaction with the visitors than was experienced before. It also limited the sense of boredom that some of the community was beginning to feel. PORTRAITS of BU S IN ESS PRA CTI CES in EMERGING MARKETS USA jACK M EETS PANAMA: TOURISM PLA NN I N G and M A RK ETI N G in P AN AM A Along with the preferences of the visitors, the ages of the visitors allowed the community to develop activities not only focused on cultural beliefs and history, but also activities, such as hiking and paddling, that involve exploring the surrounding nat ural beauty. The younger, more physically-fit visitors made it possible for the village to offer activities focused on the adventure niche, not only the education niche of tourism. By offering a variety of activities, the community also positioned 4.44% 26.67% How Did You Get to Village? Age 15-24 0 25-34 ~ 35-44 • 45-54 • 55-64 0 65+ [!!l Other • tndenpendantty 0 Tour Operator • Exhibit TN-9. How Did You Get to the Village 1.11% 1.11% 4.44% i 4.44% Exhibit TN-8. Age Groups itself to offer activities suited for tourists wanting a recreational or wilderness t rip. This mix made the site very attract ive to tour operators. The community chose to focus on the tour operator distribution channel as opposed to the cruise ship market. The community based their decision upon the type of travelers tour operators catered to and their ability to reach foreign markets with their promotional activities. With the help of IPAT, Parara Puru began a relationship marketing strategy whereby they evaluated 4 respected tour operators serving Panama. The promotional brochure (Figure TN- enabled the community to present their tour in a succinct manner. After they presented the tour to all of the chosen operators, 2 tour operators, Panama Jones and Pesantes Tours agreed to package the tour for their clients at an agreed upon price. The package involved organizing a set of activities that would meet a particular traveler's need. For example, the adventure tour would include the standard tour, plus specific activities that suited the wilderness traveler, like an extended hike in the jungle and a river fishing trip. On the other hand, a tour suited for the educational minded traveler would include the stan- C AS ES for MA NA GEMENT EDU C ATION - TE AC HING NOTES Region of Country of Residence II 0 0 IT!J Iii II US-Southeast US-Northeast US-Midwest US-West US-Southwest France 0 I:'!J liD 0 II Panama Germany Australia Other Puerto Rico Exhibit TN- I 0. Residence of the visitor 49 CASE STUDIES - TEACHING NOTES Income Statement May Income Statement October Number of tourists 125 Number of tourists 50 Average Price per Tourist $35.00 Average Price _per Tourist $35.00 Number of trips made Number of trips made 20 8 Total Revenue $4,375.00 Total Revenue $1,750.00 4 Boat Drivers $300.00 4 Boat Drivers $120.00 8 Boat Assistants 320 8 Boat Assistants 128 2 Speakers 300 2 Speakers 120 2 Nature trail guides 300 2 Nature trail guides 120 6 Musicians 300 6 Musicians 120 7 Dancers 350 7 Dancers 140 4 Cooks 400 4 Cooks 160 I Treasurer/Accountant 400 I Treasurer/Accountant 160 I Treasurer Asst 200 I Treasurer Asst 80 2 Nature Guide Assistants 200 2 Nature Guide Assistants 80 8 Activity Leaders 400 8 Activity Leaders 120 Total Payroll Expenses $3,470.00 Total Payroll Expenses $1,348.00 Food $120.00 Food $50.00 Gas 380 Gas 152 WECHA Fund 240 WECHA Fund 100 NOKO Fund 60 NOKO Fund 25 Motor Fund 60 Motor Fund 25 Cell Phone 35 Cell Phone 35 Total Operating Expenses $895.00 Total Operating Expenses $387.00 TOTAL EXPENSES $4,365.00 TOTAL EXPENSES $1,735.00 NET PROFIT/SAVINGS $10.00 NET PROFIT/SAVINGS $15.00 Notes for Figure TN-II- Drivers are paid $15.00 per trip and one driver is needed per boat. Drivers need two boat assistants. They are paid $8.00 per trip. Only one speaker and one nature guide are needed per trip. They are both paid $15.00 per trip. The nature guide assistant receives $10.00 per trip. The musicians and dancers are paid $2.50 per trip. The entire group of dancers and musicians are needed. Two cooks prepare the meals at $ 10.00 per trip. The accountant is paid $20.00 per trip and his assistant is paid $10.00. Between 4-6 activity leaders are needed per trip. Their wage is $3.00 per trip. Food costs $1.00 per person and gas $19.00 per trip. Contributions are made to the WECHA, NOKO and Motor funds at $2.00, .50 cents and .SO cents per person respectively. Table TN-I I. Income Statements for Parani Puru- October and May dard tour, plus activities such as an Embeni language session and an arts and crafts demonstration. to sell their crafts for significantly more money than can be had with tourists visiting their village with the tour operators. While the community has chosen to focus on the tour operators as their tour distributors, they have found an access to the cruise ship market. A group of community members travels 2 ?-hours to meet cruise ship passengers disembarking.An arts and crafts fair is held where the community has been able The tour operators have successfully enabled access to foreign markets, specifically the United States. The community is increasing their level of international recognition as an ecotourism destination. Representatives from the Miami Zoo and Photographers from France and Spain have visited the com- so PORTRAITS of BUSINESS PRACTICES in EMERGING MARKETS USA ]ACK MEETS PANAMA: TOUR I SM PLANNING and MARKETING in PANAMA Positive Impacts Negative Impacts • Money is entering into the community and it has developed an economy within the community that distributes the wealth. • Individualism has been promoted by the capitalistic ambition to get ahead. Stress levels have increased within the community. • Relationships with donor organizations and capacity building groups have been forged. The community understands the role these groups play in assisting their business develop. • Internal fights and power disagreements concerning the roles of traditional government and tourism management have become more comm on. • Less pressure on the National Park and forest. The communides do not fish or hunt to sell. They respect the w ildlife as a valued commodity for their business. • Many of the same people are receiving the training available.AII community members are not involved in Capacity building exercises. The community depends upon a few people to continue managing tourism. • Sanitary management has become an important issue and is being understood how to deal with it properly. • Relations with ANAM have improved and are highly interactive. More work could be done to establish a true co-management opportunity with the communities. • The communi ty is developing into a consumer society. Children and adults wear urban style clothes and shoes when the tourists are not present. Savings, planning for the future and investment knowledge is still limited. • Women have more value and participate in decision-making. • A clear separation between foreign tourist's wealth and community's has been noticed. • Alcoholism is not a problem. • Although the culture is being reinforced, it is seen as just a business asset. • The culture is being validated as a valuable resource and children are learning that it is important to learn their culture and speak the language. • Community depends on tourism. Other secondary activities • Health conditions, including nutrition levels, are improving within the community and the value of education is becoming • The selection and quality of artwork is poor for the tourists visiting the village. are not being practiced, such as farming. more recognized. People in the community seem happy • A class system is developing within the community. Whereas, higher income residents do not interact much with the lower income group. Table TN-1 2. Current Status munity to make documentaries highlighting the community's successful tourism operation and the tremendous cultural and natural resources they possess. Summary of the Results to date In Figure TN- I I ,Julian Chang provided a recent income statement from the Parara Puru tourism operations. It shows a remarkable change in the number of visitors, the amount of revenue collected and the manner in which the community distributes the income. I. This note was written by Jared Elling of the University of PittSburgh. 2. Voight, Jean, "Demystifying the Mission Statement;' Nonprofit World, January/February 1994, pp. 29-32 3. Kotle1~ Philip and Armstrong, Gary, Principles o f Marketing, 6th ed. Prentice Hall 1994 ch. 2 4. Koder, Philip, Marketing Management:Analysi.s, Planning Implementation and Control, 8th ed. Prentice Hall, 1994 Chap. 3 Finally, in Figure TN-12 Julian elaborated his opm1ons concerning the positive and negative effects that the Embeni Community Based Ecotourism projects has had on the communities. CASES for M ANAGEMENT ED UCAT ION - TEACHING NOTES 51 CASE STUDIES - TEACHING NOTES 52 PORTRAITS of BUSINESS PRACTICES in EMERGING MARKETS